Idaho-based Premier Mortgage Resources is suing Canopy Mortgage for unspecified damages over a family's alleged recruitment of their former PMR colleagues, and loans-in-progress, to Canopy. The Utah-based Canopy has asked a Washington federal court to dismiss the lawsuit, largely because it lacks details.

The complaint identifies 10 unnamed defendants, but blames the family for the scheme. They are Curt Lillibridge, a former PMR area manager; Riley Lillibridge, a branch manager; and Keil and Cameron Lillibridge, which the lender says were former loan officers. None of the Lillibridges are identified in the filing as defendants.

According to PMR, the family abruptly resigned in December 2023 and began working for Canopy immediately. The Lillibridges allegedly enticed their colleagues to join Canopy both before and after their departure, activity which forced PMR to shutter its Everett, Washington branch because of a lack of employees.

The lawsuit accuses Canopy of misappropriating PMR's confidential loan information, leading some loans in progress to eventually close at the competitor. 

"As a result of the foregoing unlawful conduct, (Canopy) has stolen many of plaintiff's in-process loans, resulting in millions of dollars of lost business revenue to Plaintiff," wrote attorneys for PMR.

An attorney for PMR declined to comment Friday, while neither Canopy and its attorney nor the Lillibridges returned requests for comment. 

PMR is accusing defendants of tortious interference with both its origination activity and employment contracts. The lender also argues the Lillibridges should be subject to arbitration. 

Canopy filed a motion to dismiss the lawsuit last month, arguing the complaint doesn't describe in any detail the transferred loans in question, or how Canopy aided the Lillibridges in their alleged scheme. 

"Premier offers no factual allegation to support its assertion that Canopy intended to interfere with any contract, much less that it intended to do so in an improper manner," wrote counsel for Canopy. 

The opposing lender is also asking a judge to stay the lawsuit, pending the outcome of arbitration, which is private and could keep the lawsuit at bay for a while. 

The case is similar to the numerous poaching and theft of trade secret claims filed between mortgage shops during the refinance boom, when firms were flush and sought high-producing talent. While some of those cases linger, larger lenders have settled many disputes. 

Premier spans 55 branches and counts 300 sponsored mortgage loan originators, according to a public database. It originated $3.53 billion in loan volume last year, according to a Richey May analysis of Home Mortgage Disclosure Act data. 

Canopy reported $2.2 billion in volume last year and employs 449 sponsored originators across 98 branches, according to the databases.